Industry Analysis
ROBUST GROWTH
The online dating industry has developed in step with the internet's social and economic expansion. The industry has maintained robust growth and generated an annual average growth rate of 30% since 2003.1
Figure 3: Economic and social trends are fuelling robust growth of the online dating industry.
Online dating has lost its initial stigma to become an accepted social norm, just as online commerce has increased as security concerns have subsided. As a result, an increasing number of people are using dating websites. The market’s acceptance of increasing membership fees has also contributed to this growth.2
Online dating is now an accepted social norm and continues
to grow along with the internet
INCREASING SPENDING ON ONLINE DATING SERVICES
American singles are spending more for online dating services. In 2006, they spent $600 million, up from $473 million in 2004 and $530 million in 2005.3
(Sources: Online Publishers Association, Attractionsites.com)
Figure 4: The market for paid online dating services is growing and reacbed $600 million in 2006.
Increasing U.S. consumer spending on online dating services is part of a growing online paid content market, which totaled an unprecedented $2 billion in 2006.
U.S. singles spent $600 million on online dating services in
2006, up from $503 million in 2005 and $470 million in 2004
Online dating is now the second largest category of online content spending in the U.S.
(Sources: Online Publishers Association, Attractionsites.com)
Figure 5: The overall online paid content market is growing.
PRICE INSENSITIVE MULTIPLE DATERS
Certain dedicated online customers are price insensitive and are willing to pay for value-added services that will help them to find quality long-term relationships. Approximately 25% of online daters seeking serious relationships or marriage hold paid subscriptions to more than one dating site — more than double the comparable rate among internet daters in general.4 Such "serious" online daters are more likely to go from browsing to paying at a site, and to keep their subscriptions longer.5
25% of online daters seeking serious relationships or marriage
hold paid subscriptions on more than one dating site
Industry giants like Yahoo! Personals and Match.com are targeting this lucrative subset with tools and services to meet their needs. For example, "singles seeking long-term compatibility" can pay $39.95 a month ($15 more than the standard monthly rate) for Yahoo! Personals Premiere. For an extra $8.99 per month (in addition to the standard monthly rate of $29.99), Match.com users can subscribe to MindFindBind with Dr. Phil, which claims "to help [members] understand more about relationships."
1 Jupiter Research, Online Publishers Association, Attractionsites.com.
2 Jupiter Research.
3 Online Publishers Association, Attractionsites.com.
4 New York Times, "Looking for Love in All the Possible Places," by Alex Mindlin, February 13, 2006.
5 Ibid.
